KUALA LUMPUR – It would be discriminatory to automatically disqualify firms linked to politicians or ministers from government projects, but higher levels of transparency and even investigations are required, a civil society leader said.
Former Bersih chairperson Thomas Fann has said this is because public funds are involved and investigations are needed to determine that the contracts awarded are free from any political influence, especially if the heads of companies involved are related to ministers or MPs.
“(When there is) perceived abuse of power, cronyism or corruption, investigations are needed. When it comes to the awarding of government contracts, it is always about the process, the merits and the level of transparency.
“However, the level of transparency should be much higher if parties involved are related to a minister or a government official,” Fann, who is co-founder of a newer civil society group, Projek Sama (Stability and Accountability for Malaysia), told Scoop.
He was commenting on concerns about the awarding of the pilot phase of Selangor’s Demand Responsive Transit (DRT) project to Asia Mobiliti, which is run by Ramachandran Muniandy, the husband of Youth and Sports Minister Hannah Yeoh.
While it would be discriminatory to impose a blanket exclusion on firms linked to politicians or ministers from vying for any government-funded project, Fann said the DRT pilot, which is subsidised by the Selangor government, was an example of why thorough investigation was needed.
“A thorough investigation could either confirm wrongdoings or exonerate the minister and the Selangor state government,” said Fann, who is also chairman of Engage, a group that promotes citizen participation in democracy and human rights.
Meanwhile, Centre to Combat Corruption and Cronyism (C4 Centre) chief executive Pushpan Murugiah noted that conflict of interest in itself was not corruption, but could be an “enabler for corruption to happen”.
“Conflict of interest is part of the bigger ecosystem of how grand corruption often happens in the country,” he told Scoop.
The case of Asia Mobiliti in Selangor’s DRT project and its links to Yeoh is “the exact reason why the government should look into establishing a code of conduct to handle conflicts of interest”, Pushpan added.
“The code would be regulations or guidelines that (defines) for ministers or MPs (circumstances of) conflict of interest, and what can or cannot be done in those instances.
“Any form of conflict, whether actual, potential or perceived, carries the same risk factor for corruption. Therefore, it is extremely important to regulate this as part of risk management initiatives,” he said.
In an earlier press statement on May 29, the C4 Centre noted with concern that Yeoh is a prominent figure in DAP and in the government, regardless of whether she was involved in the contract award process.
The matter is compounded by the fact that there was no open tender. The Selangor state government and any individuals involved within this process should have acknowledged the possibility of a conflict of this magnitude occurring, with necessary measures taken to reduce the likelihood and perception of abuse.
“By its very nature, an open tender process encourages competition and openness in the procurement process, and forms part of the UN Commission on International Trade Law (Uncitral) Model Law for public procurement,” the C4 Centre said.
Selangor Investment, Trade and Mobility executive councillor Ng Sze Han has said the decision to involve only Asia Mobiliti and another firm, BadanBas Coach Sdn Bhd, in the trial or proof-of-concept phase was based on the fact that they were the only companies licensed by the Land Public Transport Agency to run a DRT transportation system.
Each company received equal funding of RM2.1 million from Selangor, disbursed in three phases to prevent abuse of state funds and to subsidise users during the proof of concept.
Ng also said the proof of concept was awarded not through direct negotiations but through a request-for-proposal process.
Asia Mobiliti, meanwhile, has said an open tender would have “created a monopoly” in a “highly specialised service”, which only it and BadanBas are qualified to perform.
Various figures, including Selangor Menteri Besar Datuk Seri Amirudin Shari, have since asserted that Yeoh did not influence the state’s decision to appoint her husband’s company for the DRT pilot project.
Asia Mobiliti co-founders Ramachandran and Premesh Chandran told Scoop in a recent podcast interview that their firm had the merits and capabilities to run the DRT.
Ramachandran also said he had been transparent “from day one” about who he was and his ties to Yeoh, and that he did not believe in doing business while hiding behind proxies.
While Malaysian Anti-Corruption Commission chief Tan Sri Azam Baki initially said the anti-graft agency had no issue with Asia Mobiliti’s selection for the pilot project, the authority is now investigating the matter after receiving “new complaints” and “new leads”. – June 4, 2024
